Reclaiming PAYE tax on flexible drawdown payment in advance of self assessment at end of tax year
My father entered into a flexible drawdown product in March 2012, having previously been in a capped drawdown product with the same provider (he is 71 years of age).
His intention has been to draw the maximum amount of money he can from his fund each year so that he remains within Basic Rate tax (he has approximately £22k of other pension income per annum from both State and an employer final salary pension).
With this in mind he requested drawdown of £20k from the provider, and this has been made in April 2012 (2012-13 tax year). The provider has applied tax code/basis of 810L to to the payment which has resulted in tax of £7,839 being deducted meaning the net payment was £12,161.
I appreciate that he will have a basic rate liability of 20% to pay and that, assuming his other income receipts in the current year means he is only liable to basic rate tax for the year, under self assessment he will be able to reclaim the additional tax suffered at the end of the tax year.
Is there any way to accelerate recovery of the near £4k of additional tax he has suffered - he would like to benefit from the interest (however small that may be given the current economic climate) rather than allowing the tax man to?
- Aggressive HMRC 1,079 13
- Charity reserves 45 1
- New HMRC phone answering method ... 124 3
- Quickbooks expert needed 102 1
- Have i messed up? 338 7
- Related Parties Note 277 6
- Client change of address for VAT - can't do it online?! 328 6
- Personal returns late information - when to get tough? 1,320 16
- Concerned about RTI 2014 2,356 57
- Sage 50 Accounts - Opening Bank Account Balance Posted to Nominal 9998 Suspense Account 466 26
- RTI and Annual Directors Salary 242 1
- End of the party for dividends? 1,204 18
- How to format a stock book 360 1
- Playstation 4 - Allowable expense or not? 2,365 31
- Disposal of property 97 2
- Tax liability of sole trader changing to partnership 124 1
- Website - Any guess on their business ... 227 2
- trading or dormant 199 4
- do I have to pay NI? 156 2
- Matching of tax return to P60 261 5
- Desperately seeking Susan, Sam or anyone with any other name 965
- Experience with Islamic investor following Sharia-compliant rules? 537
- Darwinpay Partnership Assessment 346
- Tax efficient holding company structure 274
- S464A Charge to tax: conferring benefit & BIK 260
- Investment property company accounts template 239
- auto enrolment - calculation of first pension deduction 208
- Charge out rates in London? 183
- Personal consumption by landlord 163
- Interest on Loan to a Company 154